A house put on sale by the initial buyer is called a resale house. Buying a resale house has its own merits and challenges. While it could have more warmth, being owned before, it could have some legal complications too. Therefore, while buying a resale property, you must pay extra attention to the approvals and documentation. If you are looking forward to buying a resale house, here are some documents you must check.
- Title deed
The title deed is the primary document that proves the sales and transfer of the property from the seller to the buyer. It contains the name of the seller, details of the loan, information about the property, etc. This document proves that the seller has a clear title of ownership and a marketable title.
- Sales deed
It is a legal document to prove the sale of the property. A sale deed is registered in the registrar office after the purchase process is complete. You need to collect and sign this document after the flat is transferred to you and you have received the title deed. You must carefully read the documents to avoid any hassle in future.
- Encumbrance certificate
An encumbrance certificate proves that the property is free from any mortgage and legal liabilities. You can get this document from the sub-registrar office where the document is registered. All the transactions related to the property are mentioned in this document. The encumbrance document proves that the property is not partially owned by someone else.
- Building plan
It’s crucial to ensure that the building plan is approved by the authorities. Therefore, you must ask for a building approval certificate or building plan while buying a resale property. This plan should have a blueprint of the property, its layout, construction measurement, etc. Ensure that the property has no unapproved construction as it can cause you problems later.
- Occupancy certificate
This document is issued by local authorities and municipality to indicate that the construction of the property is safe and is compliant with all the bylaws of the electricity, sanitation and other amenities. You must take this certificate to ensure that the building is fit for habitation and has adhered to all the laws and compliances.
- No Objection Certificate
No Objection Certificate or NOC certifies that the competent authorities like municipality, electricity, sanitation, gas, water, etc., have no objection to the sale of the property, and no dues are remaining for the seller to pay. You will need to furnish the NOC if you plan to apply for home loan.
Buying a resale house is often convenient as it is usually priced lower than a new property and is available for immediate possession. However, it could have legal complications due to incomplete documents or approvals. Therefore, whenever you plan to buy a resale property, ensure that you check all the documents thoroughly. You must also inquire about the documents required for home loan to ensure that you can borrow funds for purchasing the resale house in a hassle-free manner.